The Quarter October – December 2022, The Group
- Net sales amounted to SEK 4,896 thousand (5,008)
- Costs totaled SEK -17,622 thousand (-18,460)
- The operating loss before taxes was SEK -8,672 thousand (-12,647)
- Cash flow was SEK -4,984 thousand (-8,487) and the equity/assets ratio at the end of the period was 58.7 (70.7) percent
The Order Intake increased YoY with 7 percent to SEK 7,573 thousand (7,102). Net Sales decreased YoY with 2 percent to SEK 4,896 thousand (5,008). However, Net Sales increased by 9 percent compared with Q3 2022 (from SEK 4,482 to 4,896 thousand). The Annual Recurring Revenues (ARR) were in large unchanged and SEK 18,082 thousand (18,583) compared with Q4 2021. The absolute majority of the revenues continues to be recurring software subscriptions. The Gross margin continued to be high and 94 (94) percent for the quarter. The Order Backlog, Order Intake that at the end of the period remains to be recognized as Net Sales, decreased YoY with 19 percent to SEK 13,899 thousand (17,088), but rose 24 percent to SEK 13,899 thousand (11,206) from Q3 to Q4 2022.
Full year 2022, The Group
- Net sales amounted to SEK 18,804 thousand (21,616)
- Costs totaled SEK -67,957 thousand (-57,664)
- The operating loss before taxes was SEK -36,751 thousand (-33,672)
- Cash flow for the period was SEK -37,347 thousand (26,430)
The cost increase is mainly attributed to the investment in marketing and sales efforts in the US. The company’s financial goals are to no later than the end of 2024 start to generate a positive cash-flow, and by 2025 reach an ARR of SEK 75,000 thousand with a 15 percent EBITDA.
Notable events during the quarter
- Cobalt Housing in UK deployed XMReality for first line support. Cobalt Housing Ltd is a registered housing association based in North Liverpool. They manage around 6,000 properties and each year their contact center, which is the first point of contact for the tenants, receives on average 70,000 calls and emails a year.
- XMReality signed a 5-year re-seller agreement with a large global industrial corporation, with more than 100,000 employees in more than 100 countries, to sell their branded (white label) version of XMReality Remote Guidance to their global customer base. The same agreement also serves as a 5-year Frame Agreement for internal Customer purchase of the same product. The agreement as such does not guarantee any new orders.
- Saab doubled their XMReality Remote Guidance license holding. As communicated back in October 2020, Saab who serves the global market with services and solutions within military defense and civil security, and XMReality signed a three-year contract. Saab has now ordered additional licenses as their use is increasing.
- XMReality Inc. (US) signed an annual subscription agreement with Alta Forest Products based in Chehalis, Washington. Alta Forest Products is the world’s largest producer of wood fence boards. A technology driven company dedicated to sustainable forestry and zero-waste manufacturing, Alta Forest Products is using XMReality to reduce manufacturing downtime across its North American locations and for remote support of repair operations.
- XMReality expanded within the UK housing sector and signed an agreement with one of the country’s leading housing associations: Sovereign Housing Association. Sovereign manages over 60,000 properties in the UK and is committed to becoming a modern, connected business with digital services that provide a great customer experience for their tenants.
- XMReality performed a preferential rights issue of units, shares and warrants of series TO1. The subscription breakdown shows that approximately 76 percent was subscribed with and without the exercise of unit rights. Consequently, underwriters of the Rights Issue allocated approximately 24 percent of the Rights Issue. The Directed Issue was fully subscribed. XMReality thereby obtained SEK 26.2 million before issue costs. The new capital will mainly be used for working capital, marketing and sales in US and Europe, product development and for partnerships. Units were converted to shares on January 17th, 2023, and the number of shares increased with 47,555,269 to 88,475,269 shares. Trading in warrants of series TO1 is taking place on Nasdaq First North Growth Market. The last day of trading in warrants is May 16, 2023. Two (2) warrants of series TO1 entitle, during the period 8 – 19 May 2023, to the subscription of one (1) new share in XMReality at an exercise price corresponding to 70 percent of the volume-weighted average price paid for XMReality's share on the Nasdaq First North Growth Market, however minimum SEK 0.55 and maximum SEK 1.00 per share. This means that XMReality, upon full utilization of the warrants, may receive a maximum of approximately SEK 23.8 million before issue costs. Also, the bank loan amounting to SEK 5 million mention in conjunction with the rights issue, was completed with the XMReality commercial bank at standard commercial terms.
Notable events after the quarter
- XMReality Inc. (US) signed an annual subscription agreement with Toshiba America Business Solutions, Inc., a subsidiary of Toshiba TEC Corporation. They are a global leader within office printing and retail solutions and have offices across the U.S. and Latin America. Toshiba America Business Solutions will use XMReality to improve service resolution times while at the same time reducing travel.
- XMReality has entered into an agreement with Erik Penser Bank regarding market making. Erik Penser Bank takes starts as market maker on February 14, 2023. The market maker commitment is provided in accordance with Nasdaq Stockholm AB's rules for market making. This means that Erik Penser Bank, through their role as market maker, acts as a guarantor that there are buy and sell prices and a guaranteed available volume in the share and that the difference between the buy and sell price becomes smaller.
In this video Jörgen Remmelg, CEO of XMReality, together with Johanna Edepil, CMO, talk about the reported result for the company and which events that are particularly interesting to highlight for the investors.
Link to the report website: https://www.xmreality.com/en/investors/reports-and-analyzes
The information in this release is such that XMReality AB (publ) is required to make public in accordance with the Market Abuse Regulation issued by the EU. The information was released by the below mentioned contact person for publication on Thursday, February 16, 2023, 08:30 CET.
The company’s Certified Adviser is Redeye AB
www.redeye.se